Cyprus state aid for low, middle income people

The Cyprus government announced a package of measures Friday, totalling CYP 102 mln (EUR 175 mln) in the form of state aid to low- and middle-income families.

President Tassos Papadopoulos said that the aid is in the form of monthly grants and increased benefits for the 2005-2006 period to pensioners, rural households, underprivileged people, single parents and large families.

He said that this money is in addition to the fuel subsidies the government announced a week earlier to rural communities who are burdened with spiralling heating bills because of the rise in world crude oil prices.

The aid begins with CYP 75 to some 70,000 pensioners who receive up to CYP 225 per month, CYP 50 to single parents who had been receiving a benefit of CYP 300 a month, CYP 10 to parents with a son serving in the National Guard, as well as aid of CYP 500 to 2000 for the repayment of rural debts.

In addition, first-time home buyers will receive grant-in-aid of two thirds of the 15% VAT to be paid on the construction cost.

This last measure follows harsh criticism from the opposition that argued that the recent addition of 15% VAT to new property purchases would hamper investments in real estate.